01, June 2017

The first of the six Scorpene submarines- Kalvari, being built in India under technology transfer is likely to join the Navy by end of July. Kalvari is going through its final phase of trials.

INS Kalvari

INS Kalvari is named after a deep-sea tiger shark. The Scorpene is part of the ambitious Project 75 of Indian Navy’s submarine programme.

This type of submarine is designed to operate in all theatres including the Tropics. It can undertake various types of missions that are undertaken by any modern submarine including anti-surface warfare, anti-submarine warfare, mine laying, intelligence gathering, surveillance, etc.

With its superior stealth capability, it can launch a crippling attack on the enemy using precision guided weapons. The attack can be launched with torpedoes, as well as tube launched anti-ship missiles, whilst underwater or on surface.

Project-75

SixScorpene submarines are being built under Project-75 by Mazgaon Docks Limited (MDL) with technology transfer from France. All the six submarines under this projects will be indigenously built at Mumbai’s Mazagaon Dockyard Ltd. These attack submarines have diesel propulsion and an additional air-independent propulsion.

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2.Preventive detention no quick fix

Source: The Hindu

Supreme Court of India, in a case, has observed that preventive detention of a person by a State after branding him a ‘goonda’ merely because the normal legal process is ineffective and time-consuming in ‘curbing the evil he spreads’ is illegal.

The judgment dealt with the case of a seed manufacturer in Telangana who was taken into preventive detention by the authorities on the allegation that he is selling spurious chilli seeds to poor farmers.

What are important observations by court:

Detention of a person was a serious matter affecting the liberty of the citizen. Hence, preventive detention cannot be resorted to when sufficient remedies are available under the general laws of the land for any omission or commission under such laws.

The order of preventive detention, though based on the subjective satisfaction of the detaining authority, is nonetheless a serious matter, affecting the life and liberty of the citizen under Articles 14, 19, 21 and 22 of the Constitution. The power being statutory in nature, its exercise has to be within the limitations of the statute, and must be exercised for the purpose the power is conferred.

If the power is misused, or abused for collateral purposes, and is based on grounds beyond the statute, takes into consideration extraneous or irrelevant materials, it will stand vitiated as being in colourable exercise of power.

Preventive Detention

Preventive Detention is the most contentious part of the scheme fundamental rights in the Indian constitutions.

The Article 22 (3) of the Indian constitution provides that if a person is arrested or detained under a law providing for preventive detention, then the protection against arrest and detention under Article 22 (1) and 22 (2) shall not be available.

The grounds for Preventive detention are:

Security of state.

Maintenance of public order.

Maintenance of supplies and essential services and defence.

Foreign affairs or security of India.

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3.Plan for Indian SEZs in Bangladesh hits bump

Source: The Hindu

India’s plan to step up investments in Bangladesh by setting up three mega Special Economic Zones (SEZ) exclusively for Indian companies in the latter’s territory has hit a major hurdle.

Issues:

Indian companies have cited various constraints including inadequate infrastructure and lack of uninterrupted power supply” at Mongla, Bheramara and Mirsarai – the sites in Bangladesh for the proposed Indian SEZs. For better connectivity and business prospects, they sought alternative sites close to the Chittagong Port and the capital city of Dhaka — similar to those been allocated by Bangladesh for Chinese SEZs.

Background:

India and Bangladesh had inked a Memorandum of Understanding (MoU) in June 2015 — during Prime Minister Narendra Modi’s visit to Bangladesh — for cooperation on establishing Indian SEZs in Bangladesh.

The plan was to develop Indian SEZs at Mirsarai (1,005 acres), Bheramara (about 480 acres) and Mongla (200 acres). The construction of these SEZs and Indian investment in the zones were to be facilitated through concessional Line of Credit extended by India to Bangladesh.

SEZ

A Special Economic Zone (SEZ) is a geographical region that has economic laws more liberal than a country’s typical economic laws. They are established with an aim to purport development , promote rapid economic growth by providing tax and business incentives for attracting foreign technology along with investment. These are not merely SEZ’s but may be called as “favorite Investment destinations” for foreign establishments. Such units would be future sources of employment, hubs of latest technologies and equipped with the best infrastructure.

Exemptions:

The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:

100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.

Exemption from minimum alternate tax.

External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels.

Exemption from Central Sales Tax.

Exemption from Service Tax.

Single window clearance for Central and State level approvals.

Exemption from State sales tax and other levies as extended by the respective State Governments.

The Asian Development Bank (ADB) and the Punjab National Bank (PNB) yesterday signed a $100 million loan — to be guaranteed by the Government of India — that will finance large solar rooftop systems on industrial and commercial buildings throughout India. The PNB will use the ADB funds to make further loans to various developers and end users to install rooftop solar systems.

Target:

This is the first tranche loan of the $500 million multi tranche finance facility Solar Rooftop Investment Program (SRIP) approved by ADB in 2016. The financing includes $330 million from ADB’s ordinary capital resources and $170 million from the multi donor Clean Technology Fund (CTF) administered by ADB. The first tranche loan of $100 million would be financed entirely from the CTF.

The project is aligned with the goal set by Government of India to increase the country’s solar rooftop capacity by 40 GW by 2022, and would also contribute to Government’s efforts to promote solar energy solutions as affordable and sustainable energy sources.

The entire Solar Rooftop Investment Program will cost $1 billion, inclusive of ADB $500 million funding, and the projects financed under the program will install solar rooftop system of around 1 GW capacity.

This will contribute to the climate change goal of reducing greenhouse gas emissions by about 11 million tons of carbon dioxide equivalent over the typical 25-year lifetime of rooftop solar systems.

The program will contribute to the government’s plans to increase solar power generation capacity, and also help India meet the carbon emission reduction target in line with its commitment at the recent global climate change agreement.” India’s solar rooftop market is expanding fast with an estimated total capacity potential of 124GW.

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